U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 21768 / December 10, 2010

The Securities and Exchange Commission announced that on December 6, 2010, the Honorable Harry D. Leinenweber issued an Order granting a final judgment against Daniel Spitzer and a permanent injunction against the following eighteen entity defendants: Kenzie Financial Management, Inc.; Kenzie Services LLC; Draseena Funds Group, Corp.; Nerium Management Co.; Aneesard Management LLC; DN Management Co. LLC; Arrow Fund, LLC; Arrow Fund II, LLC; Conservium Fund, LLC; Nerium Currency Fund, LLC; Senior Strength Q Fund, LLC; SSecurity Fund, LLC; Three Oaks Advanced Fund, LLC; Three Oaks Currency Fund, LP; Three Oaks Fund, LP; Three Oaks Fund 25, LLC; Three Oaks Senior Strength Fund, LLC; and USFirst Fund, LLC. The Order also granted a continuation of an existing asset freeze of all the defendants' assets. The Court's Order permanently enjoins Spitzer and the entity defendants from violations of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The Order also permanently enjoins Spitzer and two of the asset management companies from violations of Section 206(1), 206(2) and 206(4) of the Investment Advisers Act of 1940 and Rule 206(4)-8 thereunder. The Order further requires Spitzer to pay disgorgement in the amount of $33.9 million, plus prejudgment interest of $10 million, and a civil penalty of $150,000.

Previously, on June 17, 2010, the SEC filed a civil injunctive complaint against Spitzer, and entities he controlled, alleging that Defendants conducted a fraudulent scheme, which involved 400 investors, from at least 2004 to present. Spitzer only invested approximately $30 million of the more than $105 million he raised from investors. To cover up his scheme, Spitzer issued to his investors false Schedule K-1s that showed inflated returns and led them to believe that their investments were profitable. The SEC's complaint further alleged that Spitzer used offshore bank accounts to pay purported business expenses of his companies. Spitzer deposited investor funds into bank accounts at the National Bank of Anguilla and the First Bank of Puerto Rico, from which he paid more than $15 million in purported operating expenses and payments to himself and various sales agents. Spitzer also used more than $4.8 million to pay third-party business expenses. The SEC further alleged that Spitzer led an extravagant lifestyle and spent more than $900,000 at a Las Vegas casino.

On August 2, 2010, the United States Attorney's Office for the Northern District of Illinois filed a criminal complaint in the United States Court for the Northern District of Illinois against Spitzer. The criminal complaint alleges mail fraud (18 U.S.C. §1341).